Reported December 21, 'Cisco Is Paying Around $650M In Cash For The Startup Isovalent' - The Information
Portfolio Pulse from Benzinga Newsdesk
Cisco Systems is acquiring Isovalent, a cloud networking and security startup, for approximately $650 million in cash. This valuation is about 32 times Isovalent's annual recurring revenue (ARR), significantly higher than the average valuation multiple of 8.2 times ARR for enterprise software stocks. The acquisition indicates a boost in startup valuations within the enterprise software sector, influenced by the rebound of enterprise software stocks.
December 22, 2023 | 8:57 pm
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POSITIVE IMPACT
Cisco's acquisition of Isovalent for $650M cash reflects a strategic move to enhance its cloud networking and security offerings. The premium valuation suggests confidence in Isovalent's technology and potential for growth.
The acquisition of Isovalent by Cisco is likely to be viewed positively by investors as it enhances Cisco's portfolio in the cloud networking and security space, which is a growing market. The willingness to pay a premium may also indicate the strategic importance of Isovalent's technology to Cisco's future growth. However, the high valuation could raise some concerns about the price paid.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90